Investment Company and. Variable Contracts Products Principals (Series 26) Practice Exam

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Within what time frame must the carrying firm complete the transfer of a customer's account if there are no exceptions?

1 business day
2 business days
3 business days
5 business days

The correct answer is: 3 business days

The correct answer is the three business days time frame for completing the transfer of a customer's account, assuming there are no exceptions. This is mandated by the National Association of Securities Dealers (NASD) and the Securities and Exchange Commission (SEC) regulations, which aim to ensure that transfers are processed efficiently and that customers can access their funds and securities without undue delay. When a customer initiates a transfer of their account from one firm to another, the carrying firm has a specific period, which typically is three business days, to complete this transfer unless there are specific issues that need to be resolved. These issues could range from discrepancies in account information to holdings that require special handling, which are considered exceptions that can prolong the transfer process. Understanding this time frame is crucial for professionals in the field, as it is part of the standard operating procedures for managing customer accounts and ensuring compliance with regulatory expectations.